Suppose you put $350 into a bank account today.Interest is paid annually and the annual interest rate is 6 percent.The future value of the $350 after 4 years is
A)$414.09.
B)$434.00.
C)$441.87.
D)$481.24.

Question

Quizplus · Accepted Answer

To calculate the future value of a single sum investment, we use the formula:

FV = PV x (1 + r)^n

FV = future value 
PV = present value 
r = annual interest rate 
n = number of years

Plugging in the values, we get:

FV = 350 x (1 + 0.06)^4 
FV = 350 x 1.262476 
FV = $441.87

Therefore, the best choice is C.

Suppose You Put $350 into a Bank Account Today